The Linear Regression Channel Forex indicator for Metatrader 4 draws a linear regression channel on the chart that can be used for buy & sell signals.
The indicator shows up in the main chart window as 7 colored lines that together form the actual Linear regression channel.
Generally speaking, the trend is bullish when the channel’s slope is pointing up while bearish when it’s pointing down.
The indicator works for all time frames and Forex pairs.
Indicator Chart Example
The picture below shows the Linear Regression Channel indicator attached to the Euro / U.S. Dollar M5 chart.
How to use this Forex indicator?
This technical indicator can be used in multiple ways, find an example below:
- Open a buy trade when the Linear Regression Channel is sloping up (bull trend) and price touches the lower red channel line.
- Place your stop loss below the channel.
- Exit the buy trade at the upper red channel line or near key resistance.
- Open a sell trade when the Linear Regression Channel is sloping down (bear trend) and price touches the upper red channel line.
- Place your stop loss above the channel.
- Exit the sell trade at the lower red channel line or near key support.
How to install the Linear Regression Channel indicator to the Metatrader 4 platform?
- Download the linear-regression-channel.ex4 indicator file here and save it to your computer
- Open your Metatrader 4 platform
- Click on “File” (top menu) and then select “Open Data Folder” from the drop down menu
- Click on “MQL4” and open the “Indicators” folder
- Paste the indicator file in this folder
- Restart Metatrader 4 and you’re ready to start using the indicator
How to edit the indicator?
- Attach the indicator to any trading chart of your preference
- Right click in the chart and select “Indicators List” from the drop down menu
- Select the indicator from the list and click on “Edit”
- Now you can start editing the indicator (Inputs, Colors and Visualization)
- Final step, click on the “OK” button to save the new configuration